Breaker confirms Lake Roe lithium find
13 November 2018
The first lithium drilling at Breaker Resources’ Lake Roe gold project has confirmed high-grade mineralisation.
Breaker first identified lithium potential at the project, 100km east of Kalgoorlie, while conducting gold-focused reconnaissance work in the March quarter. The exploration team identified outcropping pegmatite in an area with no record of lithium mineralisation.
Five reverse circulation holes have been completed at the Manna lithium prospect, 15km south-southwest of the 1.1 million ounce Bombora gold deposit. All intersected high-grade spodumene mineralisation including 17m at 1.8% lithium oxide from 36m; 14m at 1.03% lithium oxide from 92m; and 9m at 1.6% lithium oxide from 97m. Mineralisation remains open in all directions along a strike length of 3.4km by 1km.
Breaker said the early results gave it the confidence that a JORC resource could be established with further drilling. The company said its focus would remain gold, but it would look to determine the size and potential of the Manna discovery with a view to monetise it.
A multi-element auger surface geochemistry program is underway over a 90sq.km area to assess the potential for gold, lithium and other pegmatite-related metals, including tantalum, tin, niobium, cesium and
rubidium. The company will also undertake a small diamond drilling program to take samples for metallurgical work.
Patersons Securities analyst Xavier Braud described the results as “unexpected”. “While we understand that there can certainly be some value in the Manna project, we feel that growing the resource base at Bombora, proving the growth potential of the current 1.1Moz resource base, would take priority,” he said.
“At this stage, and despite the drill results just announced, we cannot really see a lithium project adding much value to the Breaker story. We believe that we might not be the only ones surprised by such a move.”
Braud said he expected Bombora to continue to grow. “The current resource estimate of 1.1Moz for Bombora is a starting point and we believe, based on geology, that the mineralised system at Bombora has potential to deliver more ounces as step-out drilling progresses,” he said.
“This is also the reason why we do not really understand the point of drilling for lithium when drilling for gold at Bombora would certainly keep adding value to an existing valuable project.”
Shares in Breaker rose nearly 5% to A42.5c. The stock has doubled since bottoming at 21c at the start of September.